Final Exam SCM

A 76L*34W*37.5B box carries 12 kilograms of material. If this box is to be shipped by air freight, the dimensional weight of this box would be [0.006 cubic meters = 1kg dimensional weight]: a. 16.15 kilo grams b. 12 kilograms c. 14 kilograms d. 20 kilograms

a. 16.15 kilograms

What is triple bottom line? a. An accounting tool that looks at the impact on people, planet and profits b. A management strategy which focuses on corporate social responsibility c. A management strategy which states all the attention should be on profits d. An accounting tool that looks at cost, profit and loss

a. An accounting tool that looks at the impact on people, planet and profits

If two competing firms have a choice whether to get involved in social initiative or not, in most cases: a. Both firms would decide to not work on social causes b. Both firms would decide to work on social causes c. The larger of the two firms would decide to work on social causes d. The smaller of the two would decide to work on social causes

a. Both firms would decide to not work on social causes

The type of warehouse that supports movement of goods from one supplier to many customers is called as: a. Break bulk warehouse b. Cross dock warehouse c. Consolidation center d. Consignment center

a. Break bulk warehouse

All of these are necessary conditions for a high reliability business EXCEPT: a. Creating a few managers with complete knowledge of the firm b. Ensuring that necessary resources are available for safe operations c. Creating a culture oriented towards safety d. Allowing experts to take decisions on safety

a. Creating a few managers with complete knowledge of the firm

Software that centralizes business data and allows selective access to employees is known as: a. Enterprise resource planning (ERP) b. Manufacturing resource planning (MRP II) c. Relational database system (RDS) d. Organization integration planning (OIP)

a. Enterprise resource planning (ERP)

A key feature of less than truck load (LTL) service providers is that they use: a. Hub and spoke network b. Palletized operations c. Point-to-point network d. First mile operators

a. Hub and spoke network

A risk should be avoided when a. It has a high risk propensity number b. The impact of risk is very high c. It has a high probability of occurrence d. The risk event is very difficult to detect

a. It has a high risk propensity number

A supplier used to dispatch goods to the customer from a warehouse that was 220 miles away. The transportation costs were $4000. If the supplier starts shipping form a warehouse 440 miles away, the new transportation costs would be a. Less than $4000 b. Close to $8000 c. Close to $4000 d. More than $8000

a. Less than $4000

A shoe company designs a shoe with only one compound so that the shoe can be recycled easily at the end of life. This approach is called as: a. Lifecycle Assessment b. Recyclability Assessment c. Environmental Assessment d. End-of-life Assessment

a. Lifecycle Assessment

The faster modes of transport like the airplanes are associated with a. Lower lead time, lower inventory and better customer service b. Lower lead time, higher inventory and better customer service c. Higher lead time, lower inventory and better customer service d. Higher lead time, higher inventory and poorer lead time

a. Lower lead time, lower inventory and better customer service

A key risk with rail transport is that it involves a. Multiple loading and unloading of material b. Complex shipment documentation c. Excessive regulator and auditor oversight d. Highly fluctuating service cost

a. Multiple loading and unloading of material

A country uses child labor as an excuse to ban imports from developing countries This practice is known as: a. Non-tariff barriers b. Myopic environmental approach c. Anti-social behavior d. Green washing

a. Non-tariff barriers

A fourth party logistics (4PL) service provider: a. Offers a bundle of logistics services b. Have high expertise in one mode of transport c. Should be used for all imports d. Ensures low logistics cost

a. Offers a bundle of logistics services

In a medical clinic, the inventory would be represented by a. Patients b. Nurses c. Administrators d. X-ray machines

a. Patients

A key feature of full truck load (FTL) service providers is that they use: a. Point-to-point network b. First mile operators c. Hub and spoke network d. Palletized operations

a. Point-to-point network

A reactive reason to use technology would be: a. Regulations and procedures have made the business more complex b. Raw material prices have increased c. Employee skills need to be upgraded d. Customers have become more demanding

a. Regulations and procedures have made the business more complex

A company buys used products and then changes all the necessary components so that the product is good or better than what it was in the new condition. This is known as: a. Remanufacturing b. Reusing c. Recycling d. Refurbishing

a. Remanufacuring

A process diagram that shows all the tasks and the departments that are expected to do the task is known as: a. Swim lane diagram b. Functional process chart c. Allocation diagram d. Mountain hike diagram

a. Swim lane diagram

Greenwashing refers to the practice of: a. The attempt to create false impression of environment friendliness b. Ensuring that company processes clean up any waste generated c. Removing all traces of environmental damage caused by the company d. Discussion environmental initiatives with experts

a. The attempt to create false impression of environment friendliness

Two business processes get coupled because of inventory reduction. Here, coupling refers to: a. The dependency of one process on the other b. Need to ensure that both processes never stop c. Linkages of both process on technology d. Ability of both processes to work in parallel

a. The dependency of one process on the other

Which of these best explains the Scope 1 emissions for a mall: a. The waste generated during deep cleaning the floors b. The pollution caused by customers' travel to the mall c. The pollution generated by electric company that supplies power to the mall d. The waste generated in the factories of brands that sell in the mall

a. The waste generated during deep cleaning the floors

Multimodal transport involves a. Using the same shipping document and contract over multiple modes of transport b. Allowing customers to request dispatch by any mode of transport they deem fit c. Having the capability to use different modes of transport according to their cost d. Using market leader for each leg of material shipment

a. Using the same shipping document and contract over multiple modes of transport

The Incoterms specify a. When the risk gets transferred from the exporter to the importer b. The correct nomenclature for the product shipped. c. The role of exporter's bank in the process d. When the payments should be made

a. When the risk gets transferred from the exporter to the importer

The terms "training" and "test" datasets is used for a. artificial intelligence b. robotic process automation c. automatic production software d. advanced planning and scheduling

a. artificial intelligence

Rank the identification devices based on lowest to highest level of security a. barcodes, magnetic stripes, radio frequency identification b. magnetic stripes, barcodes, radio frequency identification c. radio frequency identification, barcodes, magnetic stripes d. radio frequency identification, magnetic stripes, barcodes

a. barcodes, magnetic stripes, radio frequency identification

A reactive technology tool would: a. capture and share information b. connect physical devices to sensors and the internet c. perform checks for new markets d. allow automating radically new processes

a. capture and share information

An advantage of using barcodes is that: a. Barcodes can store a lot of information b. Barcodes are very inexpensive to use c. Barcodes are difficult to copy d. Barcodes can be read remotely

b. Barcodes are very inexpensive to use

The four possible options to manage a risk are: a. Avoid, evade, transfer and accept b. Avoid, mitigate, transfer and accept c. Avoid, mitigate, transfer and evade d. Evade, mitigate, transfer and accept

b. Avoid, mitigate, transfer and accept

A consignment of 2 twenty feet containers and 4 forty feet containers is equal to a. 8 TEUs b. 10 TEUs c. 4 TEUs d. 6 TEUs

b. 10 TEUs

Ship agents: a. Are a form of 4th party (4PL) service providers b. Act as owners of shipping lines at a port c. Are travel agents for the cargo d. Offer customers quotes from different shipping lines

b. Act as owners of shipping lines at a port

The Brundtland Commission definition of sustainability prioritizes: a. Future needs over current needs b. Both the current needs as well as the future needs c. Societal needs over company needs d. Current needs over future needs

b. Both the current needs as well as the future needs

Bill of lading a. Details the rates and charges of shipping services b. Certifies that goods are loaded in the ship c. Details the content of the shipping document d. Certifies that goods are safe to be shipped

b. Certifies that goods are loaded in the ship

A student moving from home to college town has to shift 10 large boxes of clothes, books and other personal items. The ideal mode for this movement would be: a. Parcel carriers b. Less than truck load service providers c. Courier networks d. Full Mini-truck service providers

b. Less than truck load service providers

A substantial quantity of IV bags used in hospitals in the USA are made in Puerto Rico. This is an example of creating risk due to: a. Technology change b. Location dependence c. Supplier centralization d. Inventory Reduction

b. Location dependence

Consolidation warehouses a. Move material from one supplier to many customers b. Move material from many suppliers to one customer c. Move scarce resources from factories to hospitals d. Move material from many suppliers to many customers

b. Move material from many suppliers to one customer

Organizations that have very accidents avoid simplification. This refers to a. Ensure that right technical terms are used to describe deviations b. Not offering simple explanations to events c. Letting systems stay in their natural complex state d. Providing detailed technical training to all employees

b. Not offering simple explanations to events

Which of the following goals characterizes the triple bottom line? a. Accounting, Finance, and Economics b. People, Planet, and Profit c. Time, Place, and Form d. Financial, customer, process

b. People, Planet, and Profit

Risk management process includes all of the following processes except: a. Risk Response Planning b. Risk Avoidance c. Risk Measurement d. Risk Identification

b. Risk Avoidance

Poka-Yoke is an example of a. Risk transfer b. Risk avoidance c. Risk acceptance d. Risk mitigation

b. Risk avoidance

All of these are examples of risk mitigation EXCEPT a. Ordering goods earlier than when required b. Taking a highly effective insurance policy c. Calling a friend to ensure he / she has read your email d. Carrying safety stock

b. Taking a highly effective insurance policy

The CEO of a warehousing company has sensitivity to warehouse operations. This means: a. The CEO works to reduce the silo effect within the warehouse b. The CEO is aware about the challenges of warehouse operations c. The CEO expresses sympathy towards warehouse employees d. The CEO establishes easy and comfortable working conditions for warehouse employees

b. The CEO is aware about the challenges of warehouse operations

A key part of risk management is that a. Risks that have a very low chance of occurring must not have a high priority b. The cost of managing the risk must be lower than the cost of risk c. All risks must be mitigated to ensure workplace safety d. Risks must be avoided at all costs

b. The cost of managing the risk must be lower than the cost of risk

In most cases, as the number of distribution warehouses decreases: a. The warehouse overhead decreases b. The delivery lead time increases c. The inventory holding cost increases d. The outbound logistics cost decreases

b. The delivery lead time increases

According to the notes, for effective recycling: a. Consumers must not use non-recyclable goods b. The garbage must be segregated into multiple categories c. The recycling plant must use the latest technology d. Producing firms must use multiple compounds and elements in the manufacturing process

b. The garbage must be segregated into multiple categories

In most cases, as the number of distribution warehouses increase: a. The inventory ordering cost increases b. The inventory holding cost increases c. The outbound logistics cost increases d. The customer delivery lead time increases

b. The inventory holding cost increases

A software tool that allows tracking of all interactions with customers is called: a. customer onboarding process (COB) b. customer relationship management (CRM) c. customer integration software (CIS) d. customer resource planning (CRP)

b. customer relationship management (CRM)

A key contribution of identification technologies like barcodes is: a. increase customer satisfaction b. improve data accuracy c. increase employee turnover d. reduce inventory

b. improve data accuracy

Reduction of raw material inventory: a. Increases the cost of holding inventory b. leads to a higher dependency on the supplier c. leads to higher customer satisfaction d. leads to a lower risk of stockout

b. leads to a higher dependency on the supplier

The payroll process for a business involves sending emails to multiple departments to get the employee attendance, checking with roster to confirm the attendance data, calculating pay rate from employee contracts and many other steps. The process is lengthy and has many unnecessary steps. The business decides to automate all the steps of this inherently weak process. Such automation is labeled as: a. walking the squirrel trail b. paving the cowpath c. changing the status quo d. driving on the beaten path

b. paving the cowpath

In the theory of constraints, inventory is defined as a. direct materials included in the products sold. b. total assets. c. assets - liabilities. d. sales - throughput.

b. total assets

A business risk is best defined as a. A definite cost to the business b. A possible gain to the business c. A possible cost to the business d. A definite gain to the business

c. A possible cost to the business

Which of these statements is true regarding stake holders: a. Customers are the most important stakeholders b. Suppliers can never be important stakeholders c. All stakeholders are important d. Shareholding stakeholders must be given the due priority

c. All stakeholders are important

Air freight is considerably more expensive than ocean freight. All of these are benefits of using the expensive air cargo over ocean cargo EXCEPT a. Lower lead times b. Better temperature control c. Easier custom clearance d. Higher security

c. Easier custom clearance

Which of the following is not one of the objectives of a risk management plan? a. Identify costs of risks b. Create a list of threats c. Eliminate risk d. Create a list of vulnerabilities

c. Eliminate risk

If the physical inventory is higher than the inventory on records, it is likely to lead to a. Higher technology cost b. Higher prevention cost c. Higher inventory cost d. Lower customer satisfaction

c. Higher inventory cost

A firm wants advice on how to engage the various not-for-profit environmental and social groups. A good source of this advice would be: a. ISO 14000 b. ISO 45000 c. ISO 26000 d. ISO 23000

c. ISO 26000

A key feature of complex systems is that: a. The ability of the system to convert input to output is unpredictable b. Risks in complex systems have to be accepted and can't be mitigated c. It is almost impossible for any one person to know the entire system d. The system cannot be operated without the use of technology

c. It is almost impossible for any one person to know the entire system

The organization Fair Trade does all of these except a. Support construction of hospitals and schools at the supplier's location b. Ensure that the suppliers do not use specified chemicals c. Lobby to reduce taxation for its members d. Aggregate suppliers into a coalition

c. Lobby to reduce taxation for its members

If the physical inventory is lower than the inventory on records, it is likely to lead to a. Higher prevention cost b. Higher inventory cost c. Lower customer satisfaction d. Higher technology cost

c. Lower customer satisfaction

All these are steps in using identification technologies like barcodes EXCEPT: a. Recording and transmitting product information b. Translating the code to specific product information c. Measuring the dimensions of the product d. Reading the code on the product

c. Measuring the dimensions of the product

Risk transfer: a. Reduces the impact but not the probability of risk b. Reduces the probability but not the impact of risk c. Neither reduces the impact or probability of risk d. Reduces both the impact and probability of risk

c. Neither reduces the impact or probability of risk

A company has an aim to drastically reduce carbon emissions during the intra country (within the country) transportation. The ideal form of transportation for this company would be a. 3rdParty networks b. Freight forwarder networks c. Rail networks d. Road networks

c. Rail networks

The waste hierarchy according from the most preferred to the least preferred initiative is: a. Reduce - Recycle - Reuse - Recover energy b. Reuse - Reduce - Recycle - Recover Energy c. Reduce - Reuse - Recycle - Recover energy d. Reuse - Recycle - Reduce - Recover Energy

c. Reduce-Reuse-Recycle-Recover energy

The pollution caused by all my supply chain partners, business travel, etc. is labeled as: a. Score 1 emissions b. Scope 2 emissions c. Scope 3 emissions d. Scope 4 emissions

c. Scope 3 emissions

The 'pick' process involves a. Selecting the suitable suppliers for a warehouse b. Selecting the employees for a warehouse c. Selecting the products ordered by the customer d. Selecting the optimum level of technology in a warehouse

c. Selecting the products ordered by the customer

The last mile in logistics refers to a. The last shipment done in the quarter b. The most challenging mile of the route c. The dispatch from local warehouse to customer home d. The last mile before the truck runs out of fuel

c. The dispatch from local warehouse to customer home

The term "line of sight" used in identification technologies like RFID tags refers to: a. product visible to more than one employee b. product directly in front of shipping dock c. code directly in front of scanner d. code visible with naked eyes

c. code directly in front of scanner

Magnetic stripes are a. cheapest form of identification technology b. do not need specialized equipment c. more secure than bar codes d. resilient and not easily damaged

c. more secure than bar codes

An advantage of on-premise applications over cloud is that: a. on premise applications have a lower capital cost b. on premise applications have better version updates c. on premise applications can be specifically customized d. on premise applications have lower total cost

c. on premise applications can be specifically customized

Reengineering would involve a. continuous minor process changes b. robotic process automation c. radical redesign of a process d. surgical intervention in a process

c. radical redesign of a process

A firm needs to ship products to its distributors across the country by trucks. A software tool that can help plan this is: a. network management systems b. flow management systems c. transportation management systems d. warehouse management systems

c. transportation management systems

Failure Mode Effects Analysis (FMEA) can be described as: a. A method to transfer risk b. A method to identify risks c. A method to eliminate risks d. A method to prioritize the risks

d. A method to prioritize the risks

Which of these characterizes a sustainable approach as per the Brundtland commission definition: a. A mining company shutting down mines to reduce pollution b. A shipping company reducing fishing levels to ensure future availability of fishes c. An agriculture company only buying from farmers that use organic fertilizers d. A paper company planting trees to ensure future availability of raw material

d. A paper company planting trees to ensure future availability of raw material

You have completed the calculations for a cost-benefit analysis. The costs of a control are greater than the benefits of a control. What is the most likely recommendation for this control? a. Implement the control. b. Perform a return on investment analysis. c. Recalculate the data. d. Accept the risk.

d. Accept the risk.

Stakeholders represent: a. Any individual or group of individuals that have a direct influence of firm profit b. Any individual or group of individuals that can support the business's lobbying efforts c. Any individual or group of individuals that can generate monetary resources for the business d. Any individual or group of individuals effected by a business's operations

d. Any individual or group of individuals effected by a business's operations

A key challenge in using private fleets is a. Managing driver routines b. Ensuring pollution compliance c. Reducing maintenance costs d. Arranging for backhauls

d. Arranging for backhauls

Bulk vessels are used to move: a. International wholesale trade b. Non-standard cargo c. Bulk containers d. Dry unpackaged goods

d. Dry unpackaged goods

The purpose of ISO14001 is to help companies design and implement a. Socio-economic management system b. Safety and health management system c. Social management systems d. Environment management systems

d. Environment management systems

In the total productive maintenance (TPM) terminology, autonomous maintenance refers to: a. Maintenance done automatically by robots b. Designing resources that do not need maintenance c. Clarifying the work distribution in the maintenance department d. Getting the operator of the machine to do routine maintenance

d. Getting the operator of the machine to do routine maintenance

A key feature of cross dock warehouses is that a. Warehouse setup needs very simple technology b. It ensures lowest outbound delivery cost c. It ensures lowest inbound logistics cost d. Goods are stocked for less than 6 hours before dispatch

d. Goods are stocked for less than 6 hours before dispatch

The cheaper modes of transport like the ships are associated with a. Higher lead time, lower inventory and better customer service b. Lower lead time, lower inventory and better customer service c. Lower lead time, higher inventory and poorer customer service d. Higher lead time, higher inventory and poorer customer service

d. Higher lead time, higher inventory and poorer customer service

Letter of credit is issued by a. Chamber of Commerce b. Exporter's bank c. Chamber of finance d. Importer's bank

d. Importer's bank

Offshore outsourcing has all these risks EXCEPT: a. Loss of control b. Natural disasters on the shipping route c. Theft of intellectual property d. Increase of cost of product

d. Increase of cost of product

_________ is the process of using the same shipping container over multiple modes of transport a. Inramodal b. Megamodal c. Minimodal d. Intermodal

d. Intermodal

Cradle-to-grave approach for a mobile phone would a. Maximize the amount of economic utility generated by the phone while minimizing the human resource costs b. Ensure that all stake holders are kept informed during all stages of the product lifecycle c. Ensure that all employees and suppliers involved in manufacturing the phone are paid their due amount of money d. Minimize the energy consumed during the life of the phone and create a plan for safe disposal at the end of life

d. Minimize the energy consumed during the life of the phone and create a plan to safe disposal at the end of life

A steam valve was kept open and this led to the increase of temperature of the reactor. Fortunately, just before the temperature reached the danger levels, this was noticed and the valve was turned off. This is an example of: a. Accident potentiality b. Detection control c. Risk mitigation d. Near miss

d. Near miss

Risk priority number (RPN) is a product of a. Severity, Occurrence and Timeliness b. Probability, Impact and Detection c. Probability, Impact and Timeliness d. Severity, Occurrence and Detection

d. Severity, Occurrence and Detection

As a part of visual management, firms must remove discard old documents are materials that are not needed. This step is done as a part of: a. Sort b. Set in order c. Standardize d. Shine

d. Shine

The exact capacity utilization of a machine can be found by a. Aggregate Plan b. Material Requirement Plan c. Master Schedule d. Shop floor plan

d. Shop floor plan

A key limitation for a business in using third party logistics (3PL) logistics service providers is that: a. Their service lead times are very high b. Their service levels are lower c. They turn out to be more expensive d. There may be too many 3PLs to deal with

d. There may be too many 3PLs to deal with

A company has an ecological footprint of 2.5. This means that: a. They need to increase their current spends on environment protection by 2.5 times b. Their operations are 2.5 times worse as compared to the environment benchmark performance c. Their operations are negatively effecting 2.5% of the global population d. They are using 2.5 times the level of resources that can be naturally regenerated

d. They are using 2.5 times the level of resources that can be naturally regenerated

Which of these statements best describes a risk? a. Certainty of not suffering harm or loss b. Uncertainty when looking at the past c. Clarity in future decisions d. Uncertainty when looking at the future

d. Uncertainty when looking at the future

A company has 5 factories and every factory can make any of their 20 products. They need to decide which product to allocate to which factory for the next quarter. The company should use a. enterprise resource planning b. capacity planning c. material requirement planning d. advanced planning and scheduling

d. advanced planning and scheduling

A problem of using cloud based application is: a. high initial cost b. level of technology support c. version updates d. data security

d. data security

Radio frequency Identification (RFID) tags: a. need the code to touch the sensor b. can't work in low temperatures c. should be used for all kinds of products d. do not need line of sight

d. do not need line of sight

A tool that helps reduce the silo effect across business functions is called as: a. internal integration software (IIS) b. employee relationship management (ERM) c. learning management systems (LMS) d. enterprise resource planning (ERP)

d. enterprise resource planning (ERP)

A strategic technology implementation project would involve: a. high risk, low returns b. low risk, high returns c. low risk, low returns d. high risk, high returns

d. high risk, high returns

An operational technology implementation project would involve: a. high risk, high returns b. low risk, high returns c. high risk, low returns d. low risk, low returns

d. low risk, low returns

A technology tool that allows a firm to explore new opportunities is called as: a. process automation b. reactive technology c. internet of things d. proactive technology

d. proactive technology